Money Matters with Tony Hetherington

Jul 16 2008 by Our Correspondent, Huddersfield Daily Examiner

You often mention building societies and banks, but you never mention the Post Office. As I have recently invested in the Post Office Instant Saver account I am beginning to feel nervous! W.J.P.

The Post Office is not what it used to be. The old-style Ordinary Account and Investment Account, that were part of National Savings, have gone. Instead, the Post Office now acts as an agent for a foreign bank, the Bank of Ireland. When you opened an Instant Saver account you were really investing with the Bank of Ireland. That said, there is nothing wrong with the account! It currently pays 5.75%, though this includes a bonus of 1.50% that disappears after a year. So you will need to keep an eye on how the interest rate compares with rival schemes. And even though the Bank of Ireland has its HQ in Dublin its operations in this country are fully licensed by the UK watchdog, the Financial Services Authority, with the protection of the same compensation scheme as every other major bank and building society.

A friend recently bought a property and was advised to take out insurance against a ‘chancel indemnity’ charge. Please would you clarify what this means for the ordinary householder. B.J.G.

This affects only a tiny number of people. Under rights going back hundreds of years the Church of England can levy the owners of certain homes to cover the cost of repairs to its churches. Your friend’s property title deeds will spell out the details. Church authorities rarely exercise these rights nowadays, but anyone who might be affected can take out an insurance policy that will foot the bill if an unexpected demand lands on your doormat asking you to pay for a new spire.

A relative used my name to apply for a credit card as he is blacklisted. I saw the card arrive and managed to stop this, but how can I be sure it will not happen again if he applies to a different card company? B.N.

Card issuers carry out a credit check before issuing a new card, so contact one of the big credit reference agencies such as Experian (0844 481 8000). Explain the problem and ask that a note be added to your file, warning people to double-check that they really are dealing with you and not an impostor.

I was surprised to read recently that the Halifax had introduced a £245 charge for new mortgage customers to replace the £175 mortgage exit fee that was said to have been scrapped in July last year. I paid off my mortgage with the Halifax in April this year, and I was charged the £175 then. Miss P.D.H.

The Halifax has stopped applying the exit fee to new mortgages, but still collects it if it was agreed at the time the customer took out the mortgage. According to the Halifax the £175 exit fee only applies to home loans that started between September, 2005 and July last year. If yours began earlier you are entitled to a full or partial refund.